Rental Homes Increasing Amid Wounded Market

According to most economists in the nation, America is literally teetering on the edge of disaster. While the President's press secretary and mainstream corporate media tell the American people daily that the economy is strong and Biden is doing an excellent job, the actual statistical data tells a completely different story. It really is night and day.

They claim things are going great for Americans, while data has shown that homelessness has increased by millions.

Tens of millions of additional Americans have fallen below the poverty line in only a year, and consumer confidence is at an all-time low.

One area that's been hit the hardest, yet least covered, is the housing market.

Tens of millions of Americans are close to defaulting on their rent and mortgage payments, fewer new homes are being built than in the past 80 years in America, and mortgage lenders are stingy which is causing fewer houses to be sold now than in decades.

One possible bright side to this dire situation, however, is that a lot of homeowners who were trying to sell for profit have decided that they can only make a financial return on their investment if they rent out.

In other words, it's becoming a lot easier for some Americans to find rental homes now, as many people have decided that they're losing too much money trying to sell, and so they instead just rent out.

For the average person or family looking for a home but cannot get mortgage approval, they may be able to find rental approval.

Sure, the situations are not the same, but the rental market has been growing exponentially over the past few years. Experts recommend that if you're looking for a new home in America, you should first check with rental properties.

By renting, the experts claim, you may be able to wait out the issues in America and gain your stability, so you can hit the ground running when the smoke clears.

It is not all upside, however. There are still some issues present in having to rent a home instead of buying one outright.

Long-Term Renting Prospects and How They're Not Good

One of the biggest issues in renting a home instead of owning one is that it takes longer for the market at large to adjust when so many people stop taking out mortgages.

It might not be anyone's ideal version of how a society should function, but the debt-based economy around housing is the number-one driver of new construction and even consumer confidence.

If people know they can get a mortgage for a home, and consumers have confidence that they can find a home, or sell an existing home easily, then home prices fall and there are an abundance of houses available.

Experts in the real estate market warn that if the trend of rentals continues, then the housing shortage continues, along with the high prices for properties.

So while it's helping the rental portion of the population, it's actually hurting the buying-selling portion of the market. This is a sort of ebb and flow that needs to be balanced and maintained, according to experts.

Another area where renting may hurt is with individual renters who don't shore up their credit or improve their savings while renting.

By and large, this is due to the fact that the economy is crumbling around them.

High inflation and fuel prices, and increased rental prices, are making it too difficult for renters to save up money or improve their credit.

So what happens is that renters get caught in a cycle of perpetual renting, never able to get their feet under them enough to go purchase their own home.

When this happens to too many renters in America, you end up with the issue discussed in the previous section, where the market over-corrects toward that trend and it really negatively hinders the real estate market in terms of buying and selling homes.

Another issue here is that people simply have no money in America's economy today, and people who don't want to risk spending it.

The inflation is coming from the government's reckless spending, not the spending of the people.

The people's spending has receded, to the point of multiple months of negative growth. Though, for whatever reasons, the government and corporate media refuse to refer to this as a recession.

If you're a renter in America, the good news is that you should have no trouble finding a rental property, if you can afford it. The bad news is that you may be stuck there for a while.